Studds Accessories IPO sails through on Day 1 — should you apply? Check GMP

New Delhi: The initial public offer of helmets manufacturer Studds Accessories Ltd sailed through on the first day of share sale on Thursday.

The company's IPO received bids for 84,15,400 shares against 54,50,284 shares on offer, translating into 1.54 times subscription, according to details available with the NSE.

Retail Individual Investors (RIIs) category attracted 2.16 times subscription, while the quota for non-institutional investors got subscribed 2.14 times. The Qualified Institutional Buyers (QIBs) category received 2 per cent subscription.

Studds Accessories IPO GMP today

Platforms tracking grey market trends indicate that Studds Accessories’ shares are trading at a premium of around Rs 63 or 10.77% in the unofficial market.

Based on the upper end of the IPO price band and the prevailing premium, Studds Accessories’s estimated listing price is around Rs 648 per share, about 10.77% higher than the issue price of Rs 585.

The grey market premium (GMP) reflects investors’ willingness to pay more than the official issue price ahead of the stock’s market debut.

Studds Accessories IPO: Should you apply

SBI Securities has given a ‘subscribe’ rating to Studds Accessories, citing its leadership in the two-wheeler helmet market and strong integrated manufacturing setup. The company held a 27.3% volume share and 25.5% value share in FY24.

The brokerage noted robust financial growth, with revenue, EBITDA, and profit rising at CAGRs of 8%, 32%, and 45% between FY23–FY25. It added that Studds maintains healthy returns, funds expansion internally, and is valued at 33.1 times estimated FY25 earnings at the upper price band.

Studds Accessories IPO Details

Studds Accessories on Wednesday said it has raised nearly Rs 137 crore from anchor investors.

The company's Rs 455 crore IPO would conclude on November 3. The firm has fixed a price band of Rs 557-585 per share, valuing it at around Rs 2,300 crore at the upper end of the range.

Studds Accessories IPO Objectives

The IPO is only an offer for sale (OFS), with the promoter group and other shareholders offloading 77.86 lakh shares.

Since the issue is entirely an OFS, Studds will not receive any proceeds, and all funds will go to the selling shareholders.

About Studds Accessories

Founded in 1975, Studds designs, manufactures, markets, and sells two-wheeler helmets under the 'Studds' and 'SMK' brands, as well as a range of motorcycle accessories, including luggage, gloves, rain suits, riding jackets, eyewear, and helmet locks.

While Studds caters to the mass and mid-market segments, SMK, launched in 2016, targets premium motorcyclists.

The company's products are sold across India and exported to over 70 countries, with key markets spanning the Americas, Asia (excluding India), Europe, and other regions. It also manufactures helmets for international brands such as Jay Squared LLC (sold under the Daytona brand in the United States) and O'Neal, which are distributed across Europe, the US, and Australia.

The company supplies products to leading motorcycle original equipment manufacturers (OEMs), including Hero MotoCorp, Honda Cars India, Suzuki Motorcycle India, Eicher Motors (Royal Enfield), and India Yamaha Motor.

It also caters to government and institutional buyers, such as the Central Police Canteens and the Canteen Stores Department.

The public issue is being managed by IIFL Capital Services and ICICI Securities, with shares expected to list on the stock exchanges on November 7.